Hugo,owner of Automated Fabric,Inc

question 36

Multiple Choice

Hugo,owner of Automated Fabric,Inc. ,is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
Budgeted manufacturing overhead costs:

Services furnished:
By Maintenance (budgeted labor-hours) :

By Personnel (Number of employees serviced) :

Which of the following linear equations represents the complete reciprocated cost of the Personnel Department?

• A)P = $400,000 - $150,000 (1000 / 13,100)M
• B)P = (1000 / 13,100)M
• C)P = $150,000 + (1000 / 13,100)M
• D)P = $150,000

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Definitions:

Non-Current Asset

An asset expected to provide economic benefits beyond one year, such as property, plant, and equipment.

Useful Life

The estimated duration a fixed asset is expected to be productive and functional for a company, impacting depreciation calculations.

Adjusting Entry

A record created at the conclusion of a financial period to distribute revenues and expenses to the timeframe they were truly incurred.

Supplies Expense

Costs incurred from the purchase of supplies that are used within the operation of a business.